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Xi LI
Associate Professor
Email: acli@ust.hk

PhD  Vanderbilt University
M.A. Tulane University
B.A.  Hunan University
 

   

ACADEMIC AND PROFESSIONAL EXPERIENCE

  • Current Positions:
    • Associate Professor, Hong Kong University of Science and Technology (HKUST)
    • Senior Consultant, XL Partners (served some largest global institutional investors)
  • Past Positions
    • Portfolio Manager, Senior Researcher, Acadian Asset Management
    • Assistant Professor, University of Miami, HKUST
    • Lecturer, Vanderbilt University
    • Adjunct Professor, Boston University
    • Visiting Scholar, Boston College

SELECTED PUBLICATIONS

            Top Academic Journals

  • The persistence of relative performance in stock recommendations of sell-side financial analysts, Journal of Accounting and Economics 40, pp. 129-152, 2005.
  • Are the Wall Street analyst rankings popularity contests (with Douglas Emery), Journal of Financial and Quantitative Analysis 44, pp. 411-437, 2009.
  • The Sarbanes-Oxley Act and cross-listed foreign private issuers, Journal of Accounting and Economics 58, 21-40, 2014.
  • The effect of increased disclosure on post-earnings-announcement drift: Worldwide evidence (with Mingyi Hung and Shiheng Wang), Review of Financial Studies 28, 1242-1283, 2015.
  • Board reforms and firm value: Worldwide evidence (with Larry Fauver, Mingyi Hung, Alvaro Taboada), Journal of Financial Economics 125, 120-142, 2017.
  • What Makes the Bonding Stick? A Natural Experiment Testing the Legal Bonding Hypothesis (with Amir Licht, Christopher Poliquin, and Jordan Siegel), acceptance at Journal of Financial Economics.
  • Product Market Competition Shocks, Firm Performance, and Forced CEO Turnover. (with Sudipto Dusgupta and Albert Wang), acceptance at Journal of Financial Economics.

            Top Practitioner Journals

  • A dynamic future for active quant investing (with Rodney Sullivan), Journal of Portfolio Management 37 (3), pp. 29-36, Spring 2011.
  • The limits to arbitrage revisited: The accrual and asset growth anomalies (with Rodney Sullivan) Financial Analysts Journal 67 (4-5), 50-66, July/August, 2011.
  • Asset growth and future stock returns: International evidence, with (Ying Becker and Didier Rosenfeld) Financial Analysts Journal 68 (3), 51-62, May/June, 2012.
  • Gender and sell-side analysts: Performance, behavior, and career outcomes (with Rodney Sullivan, Dan Xu, Guodong Gao), Financial Analysts Journal 69 (2), 83-94, March/April 2013.
  • The limits to arbitrage and the low-volatility anomaly (with Luis Garcia-Feijoo and Rodney Sullivan) Financial Analysts Journal 70 (1), 52-64, January/February 2014.
  • Investing in the asset growth anomaly across the globe (with Rodney Sullivan), Journal of Investment Management 13, 1-21, 2015.
  • The Low-Volatility Anomaly: Market Evidence on Systematic Risk versus Mispricing (with Luis Garcia-Feijoo and Rodney Sullivan), Financial Analysts Journal 72 (1), 36-47, January/February 2016.

SELECTED WORKING PAPERS

  • The equity ownership in IPO issuers by brokerage firms and analyst research coverage (with Qiang Kang and Ronald Masulis)
  • Deregulation and the cost of public debt (with Qiang Kang, Paul Malatesta, and Junbo Wang)
  • Product similarity and analyst research (with Charles Hsu, Zhiming Ma and Gordon Phillips)
  • On the flow-performance relations among delegated institutional portfolios (with Tong Yao and Zhe Zhang)
  • Industry competition and firms’ incentives to withhold information: Evidence from a quasi-natural experiment (with Kai Wai Hui, Chen Lin, Lai Wei, Guochang Zhang)
  • A model of China’s state capitalism (with Xuewen Liu and Yong Wang)

SELECTED MEDIA COVERAGE

  • Cited numerous times by Bloomberg, Financial Times, Wall Street Journal among many other media outlets


RESEARCH PRESENTED AT SELECTED PRACTITIONER VENUES RECENTLY

Citi Global Quantitative Investment Conference, Macquarie Global Quantitative Investment Conference, Deutsche Bank Global Quantitative Investment Conference, Wall Street Journal Beijing Bureau, *U.S. State Department, *U.S. Treasury Department, *IMF, *U.S. International Trade Commission, *U.S. Securities and Exchange Commission, U.S. Federal Reserve Board, Luncheon CFA Society at Beijing and Shanghai, Shanghai Institute of Law and Finance, Speaker at China Securities Market and Valuation Conference (Sponsored by Value Partners), Harvard China Forum Annual Conference, Boston Securities Analyst Society, HKUST-NYU Stern Global Finance Seminar (collaboration with South China Morning Post and CFA Institute), CQAsia Meeting, Northfield Annual Seminar, QWAFAFEW Boston, Quant Invest Conference, The Chinese Finance Association Boston Dinner Reception, Chicago Quantitative Alliance Annual Meeting

NOTABLE INVESTMENT PREDICTIONS, ALL BACKED BY FACTS AND INVESTMENT DECISIONS

  • Predicted the market crash at the start of 2008

  • Predicted the rally from March 2009.

  • Predicted quant equity underperformance for >2 years at the start of 2008; recofirmed the prediction in early 2009.

  • Predicted significant underperformance of momentum factors and features in the subsequent five years at the start of 2009.

  • Predicted China’s growth slowdown to possibly 3%, the underperformance of Brazil, Russia, and Australia, and the relative outperformance of the U.S. in the five years from 2011.

  • Accurately timed the market turning point from 2011.

  • See my macro prediction blog at http://xlpartners.blogspot.com
     

HONORS AND AWARDS

  • HKUST IEMS Grant: Awarded 2015
  • HKRGC Grant: 2012 - 2014
  • NTU International Conference on Finance Best Paper Award
  • Chicago Quantitative Alliance Meeting's Academic Competition Prize.
  • Finalist for Crowell Prize (Award from Panagora for Original Academic Research)
  • FMA European Conference Best Paper Award
  • FMA/AAII Award for the Best Proposed Dissertation
  • James W. McLamore Summer Award
  • Vanderbilt University Dissertation Award
  • Vanderbilt University Fellowship
  • Tulane University Scholarship

PROFESSIONAL ACTIVITIES

  • Founding Board of Directors:  CQAsia

SERVICE ACTIVITIES WITHIN PROFESSION

  • Ad hoc referee at Accounting Review, American Economic Review, European Accounting Review, European Financial Management, Financial Analyst Journal, Financial Management, Financial Review, Journal of Accounting and Economics, Journal of Accounting and Public Policy, Journal of Banking and Finance, Journal of Comparative Economics, Journal of Economics and Business, Journal of Financial Intermediation, Journal of Financial Markets, Journal of Financial Research, Journal of International Money and Finance, Pacific Basin Finance Journal